marypoppins6276 marypoppins6276
  • 12-12-2020
  • Business
contestada

A company has a discount on a forward contract for an asset. How is the discount recognized over the life of the contract?

Respuesta :

Vickiee Vickiee
  • 13-12-2020

Answer: It is charged to accumulated other comprehensive income.

Explanation:

The discount is recognized over the life of the contract when it is charged to accumulate other comprehensive income.

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